Get short Ray Dalio

The latest on the saga consuming Bridgewater is of interest. Last week we saw Ray Dalio blunder into a minefield he should have seen coming:

Mitt Romney summed it up:

Now Bridgewater is in revolt:

Bridgewater Associates Chief Executive Officer David McCormick, who is considering a U.S. Senate run, made it clear he disagrees with Ray Dalio’s politically unpopular defenses of China.

On a company call, McCormick addressed controversial remarks that Dalio had made this week on television, in which the hedge fund’s legendary founder compared China to a “strict parent” when asked about the disappearance of its citizens who get in trouble.

McCormick told staff he’s had lots of arguments about China over the years with Dalio and that he disagrees with the billionaire’s views, according to people with knowledge of the matter.

And Dalio has turned his advanced kowtowing skills back home:

A big yawn to that. Dalio has spent countless media hours promoting the inevitability of China’s rise. I’ve been forced to deconstruct highly debatable material time and again:

  • Dalio says invest in China (as it falls off a cliff)
  • Dalio’s great China empire hogwash
  • Dalio’s ‘inevitable China’ propaganda
  • Dalio’s reserve currency drivel.
  • More of the same

Anybody following Ray Dalio for a period of time can see he is sold on the inevitable rise of China versus the declining US.

This is not to say that Dalio does not have some very good points to make about the failures of liberalism. He does. But his analysis is far too sanguine about the challenges to China’s rise.

If I were with Bridgewater as staff or an investor, I would be quite uncomfortable with this on the basis that it is:

  • historically naive;
  • economically myopic;
  • risk stupid;
  • morally bankrupt;
  • and politically…err…perilous.

Blind Freddy can see Cold War 2.0 is intensifying and Ray Dalio is busy putting Bridgewater on the wrong side of it unless he plans to make it a Chinese firm.

My view remains that we need a large Tobin Tax to prevent Ray Dalio and his ilk from funding China’s rise at all.

Houses and Holes
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Comments

  1. IronorebustMEMBER

    Funny to compare what Dalio said and what Chappelle said and the outrage or lack thereof between Bridgewater and Netflix. Shows where our so called progressive millennials are focussed.

  2. A family patriarch who locks up, beats, abuses, controls & spies on their families every move & who disappears any family member that becomes too successful, while only paying others a fraction of what their work is worth so the patrirchs can pocket the difference to spend on grand schemes win prestige with their international friends in other countries & guys like Dalio. What a great family!

  3. Follow the money. Id be almost certain that Bridgewater is managing billions, perhaps tens of billions, of dollars of Chinese State money invested in them through China Investment Corporation (CIC). The guy is bought and paid for.

    As for being a China expert, utter piffle